Using oaxaca decomposition calculate how much of wage, Ask an Expert

Economics

Q. Suppose years of schooling, S. is only variable that affects earnings. Following equations are weekly salaries of men and females
wm=500 + 100S
WF= 300 + 75S

On average men have 14 yrs of schooling and women have 12

What is male/female wage differential in labour market?

Using Oaxaca decomposition, calculate how much of wage differential is due to discrimination. What is an alternative Oaxaca decomposition that would lead to a different measure of discrimination? What measure is better?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9307633

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